LOUISVILLE, Ky., March 17 /PRNewswire-FirstCall/ -- Humana Inc.
(NYSE: HUM) announced today that David A. Jones, the company's co-founder and
chairman of the board, will retire as chairman following Humana's April 26
annual shareholders' meeting in accordance with the company's directors'
retirement policy.
Mr. Jones, 73, who has been chairman since he co-founded Humana with the
late Wendell Cherry in 1961, will retire pursuant to Humana's policy requiring
board members to step down at the annual shareholders' meeting following their
73rd birthday. Michael E. Gellert, 73, who has served as a board member since
1968 and as a member of the board's executive committee since 1993, also will
retire.
"Both operationally and financially, Humana has never been stronger," Mr.
Jones commented. "We handed the reins to Chief Executive Officer Mike
McCallister five years ago and we've just completed our fifth consecutive year
of growth in net income, with both revenues and net income now at record
levels. Under Mike's inspired and disciplined leadership, Humana also in the
past five years has gained national recognition as the industry leader in
consumerism, technology and innovation.
"Our prospects for further growth are extremely favorable and I have
absolute confidence in the ability of our executive and board leadership to
develop fully the exciting opportunities that are now before us."
Consistent with the company's ongoing succession planning process, the
board will elect Mr. Jones' successor at the April 26 board meeting
immediately following the annual shareholders' meeting. The election will be
based on the recommendation of the board's Nominating and Corporate Governance
Committee.
"It is impossible to express the debt of gratitude owed to David Jones for
Humana's success over nearly half a century," said John R. Hall, chairman of
the board's Nominating and Corporate Governance Committee. "In addition, we
are grateful for the enormous contributions of Michael Gellert, who has played
a key leadership role on the board for 37 years. While both will be sorely
missed, our committee's ongoing deliberations give me full confidence that the
company will continue with vision and vigor to achieve further growth and
profitability."
Mr. McCallister said, "David Jones' visionary leadership and commitment to
excellence set the tone from the beginning for Humana's extended record of
growth and success. I am grateful for his ongoing confidence in our leadership
team and I'm looking forward keenly to making the most of our immediate and
long-term opportunities."
Mr. Jones and Mr. Cherry founded Humana on August 18, 1961. Throughout
most of the company's history Mr. Jones served as chairman and chief executive
officer, Mr. Cherry as president and chief operating officer.
The company's first endeavor, a nursing home, opened in Louisville the
following year. The enterprise grew rapidly and by the late 1960s the
company, then known as Extendicare, was the largest nursing home operator in
the United States. Extendicare became a public company in 1968.
Under Mr. Jones' leadership, the company by 1974 had sold its nursing
homes, begun acquiring hospitals and changed its name to Humana. In the late
1970s Humana became the nation's largest investor-owned hospital system.
Throughout the next decade, Humana was widely recognized for its centers
of excellence, its innovative indigent-care partnership with government and
the University of Louisville and its groundbreaking medical research, notably
the world's second artificial heart implant, which was successfully performed
at Humana Hospital-Audubon in Louisville on Nov. 25, 1984.
The company established a health insurance division in 1983. Ten years
later it spun off its hospitals to its shareholders, creating Galen Health
Care, Inc., and became exclusively a health benefits company.
At the time of the spinoff, Mr. Jones chose to serve as chairman and chief
executive officer of the health benefits company, which retained the Humana
name. In its first full fiscal year of operation (1994) it had revenues of
$3.7 billion. By 2004 Humana's revenues had grown to $13.1 billion.
About Humana
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's
largest publicly traded health benefits companies, with approximately 7
million medical members located primarily in 15 states and Puerto Rico. Humana
offers a diversified portfolio of health insurance products and related
services -- through traditional and consumer-choice plans -- to employer
groups, government-sponsored plans, and individuals.
Over its 44-year history, Humana has consistently seized opportunities to
meet changing customer needs. Today, the company is a leader in consumer
engagement, providing guidance that leads to lower costs and a better health
plan experience throughout its diversified customer portfolio.
SOURCE Humana Inc.
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CONTACT:
Regina Nethery, Investor Relations,
+1-502-580-3644, or Rnethery@humana.com , or Tom Noland,
Corporate Communications, +1-502-580-3674, or Tnoland@humana.com
, both of Humana Inc.
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